Which funds were upgraded to 5 Crowns?
There has been a 47% decline in the number of funds receiving a 5 Crown rating, falling to 136, while no fund was upgraded from 1 Crown to 5 Crowns.
Under the FE fundinfo Crown Rating methodology, the top 10% of funds were awarded 5 Crowns, so the low volume of 5 Crown funds reflected the difficulties firms had in achieving performance during a volatile stockmarket.
Some 43 of these funds were upgraded from a previous rating while nine received their first rating and the remainder had maintained a 5 Crown rating. There were no funds in this edition which were upgraded from 1 Crown to 5 Crowns compared to seven funds in the previous edition.
There were three sectors within the Australian Core Strategies universe which saw six funds upgraded or receive a debut 5 Crown rating. The sectors were Australian small and mid-cap equities, global equities, and global bonds.
The global bond space saw the biggest improvements with Colchester Global Government Bond N being upgraded from 2 Crowns to 5 Crowns, Russell Global Bond, Colchester Global Government Bond A and I upgraded from 3 Crowns and IPAC SIS – International Fixed Interest Strategy No 2 upgraded from 4 Crowns. The Colchester Emerging Markets Bond was a new entrant at 5 Crowns.
In the Australian small and mid-cap equity space, SGH Emerging Companies, UBS Microcap, Pendal MicroCap Opportunities, Macquarie Australian Emerging Companies and DMP Australian Small Caps Trust were upgraded from 4 Crowns while Bennelong Emerging Companies was a new entrant. The sector saw 17% of its funds receive a 5 Crown rating, up from 11% in the previous edition.
Lastly, the global space saw Forager International Shares increased from 3 Crowns, Evans and Partners International, Zurich Investments Global Growth Share, AMP Capital Global Growth Opportunities and Pengana High Conviction Equities all upgraded from 4 to 5 Crowns while Lakehouse Global Growth was a new entrant.
AUTHOR
Laura Dew
Recommended for you
The rise of self-licensed financial advisers is creating a “once in a generation” opportunity for platforms as they are prompted to select their platform of choice for the first time.
Advisers and platforms have a role to play in educating their clients with alternative investments, according to Praemium, as research finds alternative assets are set to reach $21 trillion next year.
Financial advisers report experiencing trust issues from consumers still distrustful after the Hayne royal commission and in their own staff, but overall trust levels are on the rise.
The FSC and FAAA have pinpointed the small wins and losses in Treasurer Jim Chalmers’ third budget, noting that successfully achieving change can be a "hard grind" for the profession.
